Future Retail share price tumbled another 10 percent on Monday, hitting a lower circuit of Rs 47.30 apiece. The bearish trend in the stock started after the Supreme Court on Friday ruled in favour of Amazon in dispute with the company.
The Supreme Court in its verdict said the Singapore International Arbitration Centre's (SIAC) award that stayed the deal holds valid under Section 17 (1) of the Arbitration and Conciliation Act. The SIAC in October 2020 had barred the deal from proceeding and also constituted a three-member panel to pass a final verdict, which is still awaited.
The Supreme Court order came almost a year after Reliance Industries' subsidiary Reliance Retail announced the acquisition of Future Group's retail, wholesale and logistics and warehousing business by way of a slump sale for Rs 24,173 crore in August 2020.
Amazon had acquired a 49 percent stake in Future Retail's promoter entity Future Coupons in December 2019 and the e-commerce major objected to the Future-Reliance deal saying it goes against its agreement with the Future Group.
In subsequent developments, Amazon challenged the deal in the arbitration court as well as the Delhi high court and the Supreme Court.
At 9.29 am, Future Retail share price quoted at Rs 47.30, locked at 9.99 percent lower circuit, down from its Friday's close of Rs 52.55. The stock has fallen over 24 percent in the last five days. So far this year, it has corrected almost 40 percent, while the one-year return on the stock is also negative at over 56 percent.
Disclosure: Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
(Edited by : Ajay Vaishnav)
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